Paramadina University, Jakarta, has once again convened its Meet the Leaders forum, a recurring platform designed to connect students, the public, and influential figures across strategic sectors in an open dialogue.
The latest edition, held on July 26, 2025, featured Victor Hartono, MBA, the ninth-generation member of Indonesia’s powerful Hartono Group, in a session themed “Djarum: A Story of Strategic Succession.”
Moderated by Paramadina economist Wijayanto Samirin, MPP, the discussion focused on the complexities of family business succession, intergenerational resilience, and navigating external shocks. The event took place at the Benny Subianto Auditorium, Paramadina’s Kuningan campus.
In his opening remarks, Paramadina Rector Prof. Didik J. Rachbini, Ph.D., underscored the importance of exposing students to real-life stories of business continuity across generations.
“Bringing in figures like Victor Hartono is a strategic step to share real stories about the continuity of intergenerational businesses,” said Prof. Didik.
He also stated that understanding succession in family businesses is a valuable lesson for future leaders.
Victor Hartono began his presentation with a statement that became the central theme of his family’s journey: “The industry we are engaged in today may not necessarily be able to provide a livelihood in the future. This is not just a theory, but a bitter experience our family has endured for several generations,” he asserted.
Victor narrated that the Djarum family business did not initially start in the cigarette industry, but rather in peanut oil trading during the colonial era. However, with the arrival of palm oil from Africa—which proved more productive—peanut oil was gradually displaced from the market.
The efficiency of palm oil harvesting, which could reach 12 times a year, became the main reason behind this shift. From that point, the Hartono family realized that no business is immune to technological disruption and market dynamics.
Victor then took the audience through the historical footsteps of his family, starting from the 7th generation, namely his grandfather, Oei Wie Gwan, who came from Fuzhou, China, and pioneered a firecracker factory under the trademark Cap Leo. Unfortunately, the business collapsed multiple times.
In 1939, the firecracker factory exploded, causing bankruptcy. It was rebuilt but two years later was robbed and burned. Finally, in 1942, the Japanese occupation made it impossible to operate due to a total ban on explosive production.
“The big lesson is that political and international conditions can shatter all assumptions of business continuity,” Victor explained. He also mentioned that to this day, legal firecracker factories in Indonesia are almost nonexistent due to heavy regulations and high risks.
Internal family challenges can threaten businesses
Beyond external challenges, Victor pointed out that internal family challenges often pose a greater threat to businesses. He highlighted issues such as internal conflicts caused by stalled cash flow, differing ambitions among family members, and unclear leadership.
He cited problems such as the failure of meritocracy, unfair dividend distribution, and unsuccessful generational transition as “time bombs” within family businesses.
Drawing from these long and bitter experiences, Victor shared his perspective on strategies for sustaining family businesses. He stressed the importance of clarity in leadership structure—where ideally only one main leader should exist to maintain business direction and minimize conflicts.
“The big lesson is that political and international conditions can shatter all assumptions of business continuity,” Victor reiterated.
He further encouraged the clear division of business units among family members, the importance of maintaining unity within the extended family, and openness to selling part of ownership to financially or strategically stronger business partners. “This is not a defeat, but a strategy to strengthen long-term competitiveness,” he remarked.
As his closing message, Victor expressed his hopes regarding regeneration in family businesses. “If possible, from the family there should emerge one, two, even up to four people who truly become conglomerates. Not just name inheritors, but real business players who can read the times,” he stated firmly.
This forum not only provided insights into intergenerational business strategies but also served as an important reflection for students and young generations about the meaning of adaptation, resilience, and visionary leadership in a constantly changing business world.
Source: Paramadina University
